Today, Balderton Capital launched a Founder Wellbeing Platform based on how professional athletes approach reaching peak performance.
The London-based VC is making the wellbeing and performance programme available to all its portfolio company founders. It consists of four pillars — a six-month personalised health and fitness program, CEO forums for peer-to-peer support, executive coaching, and events and resources.
The idea behind the platform is based on research confirming that founders experience the startup ecosystem as a high-stress environment. Balderton conducted online surveys with 230 entrepreneurs, all of whom were either founders or co-founders of VC-backed companies.
Marathon in sprint-mode
The study found that, although pressure is unavoidable when running a business, putting in more and more hours is not the answer to better performance and results. Furthermore, it can negatively impact creativity, long-term perspective, and crisis management.
External demands and expectations play a significant role. 51% of founders said that investors and board members put pressure on entrepreneurs to be available at all times, and 84% feel there is an expectation that entrepreneurs must always work long hours in order to be successful.
Meanwhile, respondents also acknowledged that they themselves were part of creating a long-hours culture, despite being aware of diminishing returns from simply “working harder.”
“When I was an athlete, we had to take regular breaks between practice and competitions to be 100% mentally and physically fit when it mattered”, says Nico Jaspers, founder and CEO of Berlin-based AI-powered brand-tracking startup Latana. “But when I founded my own company, I somehow had the feeling that taking breaks was not really an option, and that I had to be there for everything all the time — it was like running a marathon in sprint-mode.”
Jaspers added that he has since found better ways of managing his time in order to really be able to be on top of things when it matters most.
From athletes to entrepreneurs
His experience is confirmed by Ute Stephan, professor of entrepreneurship at King’s College who says that high mental wellbeing means more productive, creative, and persistent entrepreneurs and more ambitious and resilient businesses. Correspondingly, entrepreneurs whose mental wellbeing suffers find it difficult to deal with challenges and crises that arise.
Indeed, research has found, perhaps unsurprisingly, that a holistic approach including areas such as sleep optimisation, nutrition, and support mechanisms are key to unlocking and maintaining performance not only for athletes, but for business executives as well.
Naturally, one could argue that this is true for all employees, but company culture trickles down from the top. As many as 90% of respondents to Balderton’s survey said it is their responsibility to set the tone for a company where everyone can look after their wellbeing.
Leaders who last as long as their vision
Suranga Chandratillake, general partner at Balderton capital and a co-founder and former CEO of Nasdaq-listed fintech platform blinkx, says that past a point, simply “working harder” can negatively impact decision making, and even result in burnout. The current lack of investment in founder wellbeing could directly damage the chances for companies to succeed.
Chandratilake himself quit the position of CEO at the age of 35 because he was burnt out after 10 years in the role. But he believes there is hope. “By changing the dynamic and resetting expectations in the startup ecosystem, we can increase the chances of success, both for the founders and investors,” he adds.
“We are doing this because we believe that the best way to change the world is to build a business. And that for those companies to change the world, they need leaders who can last as long as their vision.”
With a global recession impending, Europe’s startups are feeling the pressure. Investment opportunities are dwindling and customer acquisition is getting harder. So what can startups do to survive during this time?
From hiring freezes to spending cuts, founders are making preparations to get through the recession unscathed. There are many ways to cut spending during this time that don’t involve layoffs, it’s just about being a little savvy and thrifty, and looking out for programs that are designed to give startups a boost.
Here’s your go-to checklist for smart ways startups can cut spending and save during the recession:
1. Scrap the office and go fully remote
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Thanks to the pandemic, most people are now accustomed to working remotely and interacting with their teams virtually. Although many businesses have been navigating back towards being in-office at least a few days a week, it costs a lot to hold a space that’s not being used all the time.
Either ditching the office altogether or moving to a co-working space can save a lot of money. Kate Lister, President of Global Workplace Analytics estimates, “a typical employer can save about $11,000/year for every person who works remotely half of the time.” For those that go fully remote, asynchronous working will help employees maintain flexibility during the day, and create a work-life balance that suits them and allows them to be most productive.
If you’re worried about maintaining your company culture, gaining some tips and inspiration from businesses who were operating remote models before the pandemic can be useful. Buffer and Zapier, for example, are both remote-first businesses, with global teams collaborating together from all over the world. Both businesses find that maintaining frequent, open communication is essential for the success of their remote teams.
One important thing to remember is that fully remote companies should always factor in some budget for in person team-building events throughout the year to foster team spirit and connection.
2. Choose your cloud provider wisely
Cloud services are used by many startups for everything from basic tasks like data storage, to the more advanced functions like AI and machine learning. But many also end up in a situation where they accept free cloud credits and end up taking on products and services they don’t necessarily need.
Choosing the right cloud provider can be tricky, especially as the business develops and your needs change. Ideally, you’d want the flexibility to be able to reconfigure your cloud architecture or even switch providers as these needs change, however, many startups get locked into contracts with high egress fees.
Adopting a multi-cloud strategy could be a good solution allowing you to select the services most suited to each of your team’s needs and take advantage of reserved instances and other discounts. There are also some new cost-saving cloud technologies on the market now, such as Serverless technology and Kubernetes autoscaling.
Also be sure to check out Scaleway’s Next 100 Startups Shaping Europe’s Future Program designed to support up and coming startups during the recession. If selected, Scaleway will cover up to 80% of your cloud infrastructure costs over a period of 24 months.
3. Optimize organic reach, rather than paying for a boost
Did you know, around $70 billion was spent on paid search ads in the US in 2021?
Instead of throwing money at ads, focus on organic marketing strategies that will reap the same benefits at no cost.
Best SEO practices to help with organic traffic include staying on top of keyword targeting: monitoring analytics of keyword performance will help you to continuously have oversight of what’s working and what can be improved, so you can keep optimizing your approach and improving your reach.
Another strategy is to optimize the landing page itself: making sure it has a load-friendly design and user experience (UX), that the content provides value to the audience, and that you have backlinks to help the user move across different pages of your site.
All of these factors will improve your search engine ranking. In addition to being a cheaper option, organic marketing has a lot of business benefits over paid ads too. When your content is optimized more strategically, it’s likely to last longer and see a prolonged flow of traffic, unlike paid ads that are only profitable when they’re live. It also helps to build a more loyal following as you’re engaging the audience at every step of the funnel.
4. Cast your net in the freelance talent pool
Most companies are introducing hiring freezes, but what if you have some talent gaps in your team that need to be filled for the business to continue developing?
Instead of hiring full-time, consider contracting freelancers or agencies to take on jobs on a project basis. Consider which positions you need on an ongoing basis and which you only need on an occasional or seasonal basis. Hiring freelancers instead of full-timers can save employers around $11.6 an hour per employee.
In addition to monetary benefits, outsourcing is a great way to access different skill sets, expertise, and strengths tailored to specific projects in a way that’s not possible otherwise.
There’s a wide pool of options to choose from all over the world and, of course, when you find a good and reliable freelancer, there’s no reason why you can’t hire them for additional projects and build up a good relationship as you would with a full-time worker.
5. Declutter your box of tools and subscriptions
In the digital age, companies are using multiple tools and apps for their business operations. Sometimes we have so many tools and subscriptions that we don’t even remember what they all are or what they’re for. Having a good clear out and canceling subscriptions for anything that’s not being used will reduce unnecessary spending.
There are a lot of tools that have similar functions, so having a browse to compare the offerings might mean that you’re able to find a better deal that suits you and saves a bit of money. Some multi-use platforms and tools additionally consolidate and integrate functions, so you get more bang for your buck rather than having a separate tool for every task/team.
6. Take advantage of funding opportunities
You might be taking all the measures you can to save money, but sometimes an extra helping hand can provide a bit more security. There are several open programs, both EU-funded and privately sponsored, to support startups during the recession and enable them to continue growing and scaling:
The European Innovation Council (EIC) for example, has a range of funding opportunities to back everything from research and mentoring to building business plans to scale and develop for market.
As mentioned earlier, Scaleway’s 100 Startups program is providing cloud funding support for 24 months.
Climate-KIC has a number of grants available specifically for startups that are accelerating the transition to zero-carbon and climate resiliency.
For low-tech SMEs wanting to develop AI techniques, StairwAI is a good option.
Eurosearch is a great place to find a range of funding opportunities, specifically tailored to different types of startups.
There’s no need to panic as the recession approaches. Instead, it’s time to get smart about spending, find the best options and discounts available, and always be on the lookout for the many funding programs and opportunities out there!
War has decimated much of Ukraine’s economy, but a notable exception is the IT sector. As of November, the industry’s annual export revenues had hit a record $5.5 billion — 13% more than in the same period last year.
Since Russia invaded in February, 58% of Ukrainian tech firms have processed new orders from clients. Despite brutal assaults, martial law, and general mobilization, 85% have restored their pre-war business activities. That’s according to Lviv IT Cluster, a community of companies, universities, and local authorities.
“Ukraine’s tech industry is not only showing the ability to operate fully, but it’s demonstrating growth,” says Stepan Veselovskyi, the group’s CEO. “The export of IT services grew by 9.9% compared to last year, and brought in more than $6 billion in revenue, surpassing the 2021 figure by $542 million.”
Veselovskyi (center) at the IT Arena conference, which his organization runs. Credit: Lviv IT Cluster
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This triumph over adversity has been indispensable for Ukraine. While conflict ravages the country’s coffers, the sector provides wages for workers, taxes for the economy, and technical support for the war effort. Tech provides the military with encrypted communications, UAVs, and cyber defenses, and civilians with digital IDs, air raid alerts, and online payments.
IT will also be integral to the post-war recovery — but getting there will be tough.
It can be mutually beneficial.
A summer survey by Lviv IT Cluster found that over 50,000 IT workers had relocated since the invasion, while a further 7,000 had joined the armed forces. Those that remain now endure blackouts caused by attacks on infrastructure. Some fear that empathy from clients will dwindle as war fatigue sets in.
As the challenges mount, help from overseas becomes increasingly crucial. But the benefits of support extend far beyond altruism.
“Charity is good, but you can also work with companies. It can be mutually beneficial,” says Oleksandr Yatsenko, managing partner at BRISE Capital, a Kyiv-based investment firm.
Yatsenko (far right) also works for the Ukrainian Startup Fund and software firm Finmap. Credit: Lviv IT Cluster
Indeed, Ukraine’s tech ecosystem has a unique blend of assets. The country’s rich history in computer science laid the foundations for a thriving sector. Today, it encompasses over 200,000 IT specialists and one of the world’s biggest pools of tech talent. Stellar programming skills, a high level of English, and a timezone that overlaps well with both the US and Europe comprise a compelling package.
These attributes have made Ukraine a global hub for IT outsourcing. Now, the country wants to turn its expertise into domestic tech giants.
President Zelensky’s administration has made bold moves to bring these ambitions to reality. this future. In 2019, his government established the Ministry of Digital Transformation. By 2024, the department aims to put every public service online, expand access to high-speed Internet; teach 6 million Ukrainians digital skills, and increase tech’s share in GDP to 10%. It currently accounts for around 4.5%.
Industry is united with government.
To reach these goals, the government has championed business-friendly policies: low taxation, minimal paperwork, and massive deregulation, alongside extensive anti-corruption reforms and funding initiatives, such as the Ukrainian Startup Fund.
This program has been bolstered by collaboration between the public and private sectors. War has made both sides appreciate their interdependence.
“The world should know that industry is united with the government and they help each other,” says Ivan Babichuk, chairman of the supervisory board of Lviv IT Cluster. “And it makes [Ukraine] a protective and secure place to run a business — despite the whole security issue around the country.”
Babichuk (right) in conversation with Ukrainian official Alex Bornyakov. Credit: Lviv IT Cluster
The hardships of war have added further qualities. Ukraine’s digital infrastructure and economy has been remarkably resilient since the full-scale invasion, while the workforce has acquired a rare blend of courage and adaptability. New skills in crisis management, leadership, teamwork, and efficiency have been forged in conflict.
“Most companies have retained customers and the volume of their contracts,” says Alex Bornyakov, Ukraine’s Deputy Minister of Digital Transformation. “Ukrainian developers have shown that they are capable of doing their job well even under extreme conditions. For the whole world, this is an indicator that Ukraine is a reliable partner and an attractive investment destination.”
We’ve become more active — and stronger.
Some tech businesses have thrived since the invasion. Take Mosqitter, which won the prestigious IT Arena Startup Competition in 2021. While the conflict escalated, the company grew its team and developed a new product line.
“Difficulties bring you opportunities and possibilities for growth,” says Olga Diachuk, the company’s COO. “It shows you who you really are, what you are made of, and how smart you are.”
Digital businesses also typically require fewer physical resources — which makes their revenues increasingly important to Ukraine. Brick-and-mortar stores, for instance, are now more likely to close due to safety concerns than e-commerce sites.
Nonetheless, tech firms face immense challenges of their own. Investment from overseas will be crucial a component of their future fortunes.
“It’s very important to keep the support of the local tech ecosystem from outside as Western-based funds do,” says Joachim Laqueur, General Partner at VC firm Acrobator Ventures.
“Technology is such a long-term beneficial force. Now we’re seeing the first wave of successful companies breaking the ground. Even during the time of war, these people, these companies are able to address problems that are not restricted by borders.”
Laquer (second from right) was on the jury for the 2022 IT Arena Startup Competition, which was won by WRAP, an app that automates video production flows. Credit: Lviv IT Cluster
People who already invest in Ukraine note that war is fostering a unique set of skills. For example, thousands of volunteer hackers have joined the IT army, an organization that’s defending Ukraine against Russia’s vaunted hacker groups.
Members of the group have attained unparalleled experience. Mykhailo Fedorov, the country’s Minister of Digital Transformation, describes the conflict they’ve withstood as “the first world cyber war.” The volunteers now want to share their expertise with international allies.
“Ukrainian tech companies are strengthening their cyber defense capabilities, and can help other countries better understand the nature of modern cyberattacks,” says Veselovskyi, the Lviv IT Cluster CEO.
The First World Cyber War. The first IT Army in the world. 270K of angry IT-warriors of cyber frontline. Rutube shutdown. AI tech & identification of war criminals. And many more cases to disclose after the victory. You are free to join, by the way. pic.twitter.com/3PDP075nU5
— Mykhailo Fedorov (@FedorovMykhailo) May 26, 2022
Despite these strengths, the potential of Ukraine’s tech sector will only be fulfilled through support from the international community. For Veselovskyi, the simplest way they can help is by cutting all ties with Russia.
“The next step is motivating your local governments to support Ukraine and get involved with Ukraine’s fundraising initiatives,” he says. “The future safety and economic prosperity of Europe depend on the victory of Ukraine on the battlefield. You can start working with Ukrainian companies already today through our B2B platform Lviv Tech.”
To forecast the sector’s future, Veselovskyi’s team surveyed over 5,000 tech industry representatives. In the most positive scenario, which presupposes European integration and liberalization of the economy, 78% of the respondents would remain in Ukraine. A further 12% would try to move abroad, while another 10% are yet to decide.
The best way to help Ukraine is to invest in Ukraine.
This outcome can provide the foundations for a flourishing post-war industry. To build this, continued support from Europe will be essential. Government officials have sought to spread this message at IT events around the world.
“We tell them one specific thing: the best way to help Ukraine is to invest in Ukraine,” says Bornyakov, the Deputy Minister of Digital Transformation. “Work with Ukrainian companies, give money to Ukrainian startups, and if you are able to hire Ukrainian freelancers, do it.”
The stakes are extremely high. IT remains the only industry in Ukraine that still shows growth. If it shrinks, the whole country will suffer. If it expands, however, the sector can help Ukraine not only survive, but flourish.
